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Little ones, big bills: The
$200,000 conversation parents need to have:
TD Insurance Parents and Finances survey reveals majority of
Canadian parents do not have enough life insurance to cover the
costs of raising their children

TORONTO, ON, January 25, 2010
– Car seats. Childproof locks. Sunblock. You
would do anything to protect your children. But what happens if you
are not around to take care of them? The TD Insurance Parents and
Finances survey shows that while 42% of Canadian parents believe it
will cost more than $200,000 to raise a child to the age of 18, the
majority of parents with life insurance do not believe they have
enough insurance to cover these costs.

“The poll findings show that most
parents are underinsured,” says Dave Minor, Vice
President, TD Insurance. “One of our goals is to help
Canadians think about what it takes to maintain their
family’s lifestyle in the event the unexpected
happens.”

Many Canadian parents face an even greater
issue than being underinsured - they have no insurance at all. The
survey found that 21% of Canadian parents do not have life
insurance.

“Life insurance is a hard topic for
parents to talk about; no one wants to think about not being around
to raise their kids,” says Minor. “Just like
everything else we do to protect our children, we need to consider
the worst case scenario and plan for it.”

How expensive is it to
raise Canada’s kids?
Raising children is an expensive undertaking, according to parents
of kids under 18. Forty-two percent say that raising a child to the
age of 18 in Canada will cost them more than $200,000, 31% believe
that cost is between $100,000 and $200,000 and 27% say it is less
than $100,000.

When asked about the costs to attend a
Canadian university, including living expenses, the majority of
parents estimate that in 15 years it will cost between $25,000 and
$50,000 a year to send a child away to school.

Are parents saving
enough?
If raising one child costs more than $200,000 and parents do not
have life insurance, are they putting money away for their
children’s future? The majority of parents
don’t think so. A worrying 8 out of 10 parents say they
are not saving enough: 8% say they spend more money each month than
they earn; 30% are living paycheque to paycheque with nothing left
to save; and 41% say they are saving a little, but not enough. Only
13% are saving about 10% of their earnings each month and just 9%
say they save more than 10%.

“There is no question that saving
money is tough. It can be hard to carve out funds to put aside for
the future,” says Minor. “Unfortunately, the
reality is that we all have limits. The good news is that there are
plenty of options out there that suit any budget. An insurance
expert can work with you to protect your family and your
finances.”

How many parents have
life insurance?
Seventy-nine per cent of parents surveyed say they have life
insurance, either through their workplace benefits program or
through purchasing a life insurance policy. Fifty-five percent of
those with life insurance do not believe the policy will leave
enough money to support their children to the age of 18.

“It’s also important to
consider life insurance for stay-at-home parents, not just those in
the workforce,” says Minor. “If something
happens to the stay-at-home parent, the cost of child care can have
a big impact on maintaining a family’s
lifestyle.”

Of the 21% of parents who do not have any
life insurance, 56% say they feel like they probably should have
it, 36% say they cannot afford it and 9% say they do not believe it
is necessary.

The Life Insurance Calculator at www.tdinsurance.com can help
you determine how much coverage you need. To speak to an expert
call 1.877.397.4187.

About the TD Insurance
Parents and Finances survey
From December 10-17, 2009, Vision Critical - Angus Reid Public
Opinion conducted the TD Insurance Parents and Finances survey
among 1,006 Canadian parents between the ages of 25 and 45 with
children under 18. The margin of error is 3.1 per cent. The results
of the online survey have been statistically weighted according to
the most current education, gender and region census data to ensure
a representative sample. Discrepancies in or between totals are due
to rounding.

About TD
Insurance
The TD Insurance brand is a part of TD. The wide range of TD
Insurance products help protect clients from the 'accidents of
life' including credit protection, life, health, travel, home and
auto insurance. With more than three million clients, TD Insurance
authorized products and services are available through a network of
more than 1,000 TD Canada Trust branches, the Internet and
telephone. The TD Insurance brand, through its TD Insurance Credit
Protection and TD Insurance Life and Health brands, is the number
one provider of critical illness insurance and direct life and
health premium origination in Canada. And through its TD Insurance
Meloche Monnex and TD Insurance Home and Auto brands, is the
largest direct-response insurance group in the country. For more
information, visit www.tdinsurance.com.